Cost of Employee Turnover Calculator

What goes into the cost of turnover

Research from Gallup and others puts the cost of losing an employee at roughly one half to two times their annual salary, and US businesses lose an estimated one trillion dollars a year to it. The total breaks into five buckets.

Separation

The time HR and the manager spend processing the exit, plus accrued paid time off you owe and any severance.

Vacancy

While the seat is empty, work goes undone or gets covered by others, often on overtime. A common estimate is about half the role's daily pay for every day it stays open.

Recruiting

Job ads, agency or recruiter fees, the hours your team spends interviewing, and background checks and assessments.

Onboarding and ramp-up

Training time and materials, equipment and setup, and the productivity gap while a new hire ramps to full speed. That ramp is usually the single largest cost, and it grows with the seniority of the role.

How much does turnover usually cost?

Most estimates land between 50 and 200 percent of annual salary. Entry-level roles sit near the lower end, while skilled, senior, or customer-facing roles run higher because the vacancy lasts longer and the ramp takes more time.

Why is the productivity ramp counted as a cost?

A new hire who works at half speed for three months is still paid in full. The difference between what you pay and what you get back during that period is a real cost, even though no invoice ever shows it.

Are these numbers exact?

They are planning estimates meant to size the problem and justify retention effort. Adjust the inputs, especially vacancy days and ramp time, to match the role and your business.